The State government has announced that the hike in property tax rates for urban areas, which has been in force since April 2018, has been withheld.
Addressing a press conference, Local Administration Minister S.P. Velumani clarified that assessees will have to pay the original rates of tax, and payments made by them towards the increased rates will be adjusted.
A four-member committee, headed by Principal Secretary (Finance) S. Krishnan and also comprising Municipal Administration Commissioner K. Baskaran, Director of Town Panchayats S. Palanisamy and Greater Chennai Corporation Commissioner G. Prakash, had been constituted to go into all the issues concerning the revision and rationalisation of property tax.
As per orders issued by the government in July 2018, the quantum of increase was fixed at a rate not exceeding 50% in respect of residential and rented residential buildings, and not more than 100% for non-residential buildings.
The latest decision follows the representations received by the authorities from various associations of residents and traders as well as political parties, stating that the hike had caused them “severe financial hardship”, according to an order issued by the Principal Secretary of the Municipal Administration and Water Supply Department, Harmander Singh.
